Ezel / Tax Rulings / TX
TX 8809L0897F07 Sales and/or Use Tax (State,Local,MTA) 1988-09-27

Is the transportation charge to return a repaired trailer taxable, and does it matter whether the repaired item is a motor vehicle?

Short answer: The transportation charge to return a repaired trailer is not taxable. Because a tube trailer is a motor vehicle, its repair labor is nontaxable and the separately stated parts are taxable — and the charge to haul the trailer back to the owner is for returning the trailer, not delivering parts, so it is not taxed. But if you repair tangible personal property that is not a motor vehicle, the entire repair charge is taxable whether billed lump sum or separated, and the transportation charge is taxable too.

Apply this to your situation

This page answers the general question as of 1988. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1988
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

A business that repairs and tests tube trailers asked the Comptroller about the tax on transportation charges. When it finished a repair, it used outside carriers to pull the trailer back to the owner, and sometimes listed freight as a separate item on the repair invoice.

The Comptroller explained the treatment in two steps. Because a tube trailer is a motor vehicle, the labor to repair it is not taxable, while separately stated parts are taxable (the taxpayer had been told this before). The transportation charge to return the trailer is for returning the trailer itself, not delivering parts, so it is not taxable.

The result flips for other property: if you repair tangible personal property that is not a motor vehicle, the total repair charge is taxable — lump sum or separated — and the total transportation charge is also taxable.

What this means for you

Repairing motor vehicles (including trailers)

Repair labor on a motor vehicle is not taxed, and separately stated parts are taxed. A separately stated charge to transport the vehicle back to the owner after repair is not taxable, because it is for returning the vehicle rather than delivering the parts.

Repairing non-vehicle property

If the item repaired is not a motor vehicle, the whole repair charge is taxable no matter how you bill it, and any transportation charge tied to that repair is taxable as well. The motor-vehicle carve-out does not apply.

Common questions

Q: Is the charge to haul a repaired trailer back to its owner taxable?
A: No. A tube trailer is a motor vehicle, and the charge is for returning the trailer, not for delivering parts, so the transportation charge is not taxable.

Q: Is the repair labor on a motor vehicle taxable?
A: No, the labor is not taxable. Separately stated parts used in the repair are taxable.

Q: What if I repair something that isn't a motor vehicle?
A: Then the entire repair charge is taxable — lump sum or separated — and the transportation charge is taxable too.

Q: Does separately stating the freight change the answer?
A: For a motor vehicle, the return-transport charge is nontaxable whether or not it is separated. For non-vehicle property, separating it does not help — the transportation charge is taxable.

Q: Can I rely on this 1988 letter today?
A: Treat it as guidance only. It is based on the facts presented and can change with different facts; on the STAR system it binds the Comptroller only as to the taxpayer it was issued to and may no longer reflect current policy.

Citations and references

Rules and statutes: The letter applies the Comptroller's motor-vehicle-repair position but does not cite a specific rule or Tax Code section by number.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
Comptroller September 27, 1988

Dear *:

Thank you for your letter concerning taxability of transportation
charges in connection with the repair and testing of tube trailers.

You stated that when you are asked to transport the trailer back
to the owner you use outside carriers to pull the trailers. In
billing the customer for repairs, there are instances where
freight is included as a separate item on the invoice.

In previous correspondence, I advised you that the labor to repair
the trailers (motor vehicles) was not taxable, but that the
separately stated charge for parts was taxable. The essence of
the delivery charge is for the return of the trailer and not the
delivery of parts. The transportation charge is not taxable.

If you repair personal property other than motor vehicles, the
Total charge for the repair, whether lump sum or separated would
be taxable. The total transportation charge would also be taxable.

This opinion is based on the facts presented. If there are
additional or different facts, the opinion may change.

If you have any questions, please write or call toll free 1-800-
531-5441. The regular number is 512/463-4600.

Sincerely,
Jo Ann Dieck
Tax Correspondence Division

Get today's answer for your situation

You just read a 1988 ruling on this question. Ezel checks current Texas tax law and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.